To all: You might find this info re: Newmont Mining (NEM) and Newmont Gold (NGC) of interest.
NEWMONT MINING CORPORATION HISTORY
Newmont Mining Corporation was founded in 1921 in New York by Colonel
William Boyce Thompson as a holding company to invest in worldwide
mineral, oil, and related companies. The name Newmont was chosen by
Thompson as a contraction of New York and Montana. Because, as one
biographer puts it, "he grew up in the latter and made his money in the
former."
By 1939, Newmont was operating 12 gold mines in North America. The
following year, O'okiep Copper Company came into full production in
South Africa. O'okiep formed the base for Newmont to eventually become
the world's third largest copper producer, with interests in eight
copper operations worldwide.
Beginning in 1925 Newmont acquired interests in a Texas oil field.
Eventually Newmont's oil interests included more than 70 blocks in the
Louisiana Gulf area and oil and gas production in the North Sea.
Newmont discovered disseminated gold at Carlin, Nevada in 1962 and began
operating its first mill there in 1965 under the name Carlin Gold Mining
Company. The Carlin Trend is the largest gold discovery in North America
in this century. In 1971, Newmont began using the heap leach technology
on sub-mill grade ores at Carlin. It was one of the first in the gold
industry to use heap leaching. In 1986, the company's name was changed
to Newmont Gold Company, and five million shares were sold publicly for
$47.5 million. Newmont Mining held a 90 percent interest.
In 1977 Newmont was instrumental in organizing the consortium that
purchased Peabody Holding Company, Inc., the largest coal producer in
the nation. Newmont held a 50 percent interest in Peabody following the
purchase.
A decade later, Newmont's assets were over $1.9 billion and income from
continuing operations reached $338 million. In August 1987, Newmont
became the target of an unsolicited tender offer for control and
dismemberment of the company.
As a result, the company undertook a major restructuring. This included
the payment of a $33 per share dividend to all shareholders for a total
of $2.2 billion, of which $1.75 billion was borrowed. To reduce this
debt the company undertook a divestment program involving all of its
copper, oil, gas, and coal interests.
As a further step in the restructuring, the company moved its
headquarters from New York City to Denver in February 1989. January 1,
1994, Newmont Mining Corporation and Newmont Gold Company combined
assets to form a unified worldwide gold company. Shareholders of both
companies have identical interests in the reserves, production, and
earnings of Newmont Gold's operations.
------------------------------------------------------------------------
NEWMONT FACTS
BUSINESS
Newmont Mining Corporation (listed on the NYSE as NEM) owns a 91 percent
interest in Newmont Gold Company (listed as NGC), a worldwide company
engaged in gold production, including the exploration and acquisition of
gold properties. Headquartered in Denver, Colorado, the companies have
3,000 employees worldwide.
MINING OPERATIONS
Carlin, Nevada: 100 percent owned by NGC. Operations began in 1965.
Carlin production has exceeded 1.5 million ounces per year annually
since 1989. For 1995, production totaled 1.63 million ounces. Production
is expected to reach 2 million ounces in 1996 and 2.5 million ounces in
1997 as higher grade ores are mined.
Minera Yanacocha, Peru: 38 percent owned by NGC. Operations began in
1993. Yanacocha's mines produced 552,000 ounces of gold in 1996 and will
produce 700,000 ounces in 1995. (Numbers represent total production.)
Zarafshan-Newmont, Uzbekistan: 50 percent owned by NGC. Began operations
in mid-1995. This project is a heap-leach recovery operation to treat
waste ore from the Muruntau Mine. Production in 1995 was 37,000 ounces.
1996 production is projected at 340,000 ounces, climbing to 400,000 in 1
997. (Numbers represent total production.)
Minahasa, Indonesia: 80 percent owned by NGC. Production began in early
1996. Located on the island of Sulawesi, this mine is targeted to
produce 90,000 ounces in 1996 and average an annual production of
140,000 ounces. (Numbers represent total production.)
Batu Hijau, Indonesia: 80 percent owned by NGC. A feasibility study has
been completed with the goal of being in production by the end of the
decade. This project consists of a large copper/gold deposit on the
island of Sumbawa. It holds a non-reserve resource base of 14.7 million
ounces of gold, 27.6 million ounces of silver and 11.2 billion pounds of
copper. (Numbers represent total production.)
CURRENT PRODUCTION
Total equity production for 1995 was 1.86 million ounces. Cash operating
costs in 1995 were $211 per ounce.
RESERVE/RESOURCES
NGC holds 28.8 million ounces in proven reserves worldwide and another
25.9 million ounces in mineralized material that could become reserves
in the future.
EXPLORATION
Exploration and research expenses for 1995 were $57.3 million. 1996
expenses are budgeted at $58.3 million.
SALES AND EARNINGS
On sales of $636 million in 1995, NGC generated $124.9 million in net
income and NEM earned $113.6 million. Net income per share for both
companies was $0.81.
Happy Mining
SStam
---------------------------------------------------------------------- |
